Arch Resources Inc (ARCH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ARCH - US03940R1077 - Common Stock
134.83 USD
+0.94 (+0.7%)
133.13 USD
-1.7 (-1.26%)
ARCH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. Both the health and profitability get an excellent rating, making ARCH a very profitable company, without any liquidiy or solvency issues. ARCH is cheap, but on the other hand it scores bad on growth. This makes ARCH very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year ARCH was profitable.
In the past year ARCH had a positive cash flow from operations.
ARCH had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ARCH had a positive operating cash flow.
1.2 Ratios
ARCH has a better Return On Assets (7.57%) than 80.95% of its industry peers.
ARCH's Return On Equity of 12.43% is amongst the best of the industry. ARCH outperforms 80.95% of its industry peers.
With an excellent Return On Invested Capital value of 8.85%, ARCH belongs to the best of the industry, outperforming 80.27% of the companies in the same industry.
ARCH had an Average Return On Invested Capital over the past 3 years of 29.63%. This is significantly above the industry average of 13.25%.
The last Return On Invested Capital (8.85%) for ARCH is well below the 3 year average (29.63%), which needs to be investigated, but indicates that ARCH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROIC | 8.85% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 6.69%, ARCH is doing good in the industry, outperforming 75.51% of the companies in the same industry.
In the last couple of years the Profit Margin of ARCH has grown nicely.
ARCH has a better Operating Margin (7.76%) than 62.59% of its industry peers.
ARCH's Operating Margin has improved in the last couple of years.
ARCH has a Gross Margin (17.11%) which is in line with its industry peers.
ARCH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% |
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARCH is creating value.
Compared to 1 year ago, ARCH has more shares outstanding
Compared to 5 years ago, ARCH has more shares outstanding
ARCH has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.29 indicates that ARCH is not in any danger for bankruptcy at the moment.
ARCH's Altman-Z score of 4.29 is fine compared to the rest of the industry. ARCH outperforms 65.99% of its industry peers.
There is no outstanding debt for ARCH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 4.29 |
ROIC/WACC0.79
WACC11.21%
2.3 Liquidity
A Current Ratio of 2.01 indicates that ARCH has no problem at all paying its short term obligations.
The Current ratio of ARCH (2.01) is comparable to the rest of the industry.
A Quick Ratio of 1.41 indicates that ARCH should not have too much problems paying its short term obligations.
The Quick ratio of ARCH (1.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for ARCH have decreased strongly by -64.17% in the last year.
Measured over the past years, ARCH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.55% on average per year.
ARCH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.03%.
ARCH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.11% yearly.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
3.2 Future
ARCH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.93% yearly.
ARCH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.19% yearly.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ARCH is valuated correctly with a Price/Earnings ratio of 13.13.
Based on the Price/Earnings ratio, ARCH is valued a bit cheaper than 79.59% of the companies in the same industry.
ARCH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
Based on the Price/Forward Earnings ratio of 6.77, the valuation of ARCH can be described as very cheap.
Based on the Price/Forward Earnings ratio, ARCH is valued cheaply inside the industry as 89.12% of the companies are valued more expensively.
ARCH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARCH is valued a bit cheaper than 77.55% of the companies in the same industry.
87.76% of the companies in the same industry are more expensive than ARCH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.58 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
ARCH has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ARCH's earnings are expected to decrease with -5.93% in the coming years.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
5. Dividend
5.1 Amount
ARCH has a yearly dividend return of 0.74%, which is pretty low.
ARCH's Dividend Yield is a higher than the industry average which is at 1.02.
Compared to an average S&P500 Dividend Yield of 1.88, ARCH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of ARCH is nicely growing with an annual growth rate of 47.85%!
ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ARCH pays out 50.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
ARCH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
134.83
+0.94 (+0.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners99.38%
Inst Owner Change-19.24%
Ins Owners2.44%
Ins Owner Change0%
Market Cap2.44B
Revenue(TTM)2.68B
Net Income(TTM)179.45M
Analysts76.67
Price Target168.3 (24.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend11.34
Dividend Growth(5Y)47.85%
DP50.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.92%
Min EPS beat(2)-78%
Max EPS beat(2)-51.83%
EPS beat(4)0
Avg EPS beat(4)-41.32%
Min EPS beat(4)-78%
Max EPS beat(4)-16.39%
EPS beat(8)1
Avg EPS beat(8)-25.89%
EPS beat(12)1
Avg EPS beat(12)-19.32%
EPS beat(16)2
Avg EPS beat(16)-17.53%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)3.07%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.07%
Max Revenue beat(4)11.78%
Revenue beat(8)8
Avg Revenue beat(8)8.31%
Revenue beat(12)12
Avg Revenue beat(12)10.33%
Revenue beat(16)16
Avg Revenue beat(16)11.04%
PT rev (1m)0%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 | ||
| P/S | 0.91 | ||
| P/FCF | 11.58 | ||
| P/OCF | 6.2 | ||
| P/B | 1.69 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)10.27
EY7.62%
EPS(NY)19.9
Fwd EY14.76%
FCF(TTM)11.65
FCFY8.64%
OCF(TTM)21.75
OCFY16.13%
SpS148.03
BVpS79.73
TBVpS79.73
PEG (NY)N/A
PEG (5Y)1.05
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROCE | 10.52% | ||
| ROIC | 8.85% | ||
| ROICexc | 10.16% | ||
| ROICexgc | 10.16% | ||
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% | ||
| FCFM | 7.87% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ROICexc(3y)35.22%
ROICexc(5y)N/A
ROICexgc(3y)35.22%
ROICexgc(5y)N/A
ROCE(3y)35.22%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y3.66%
ROICexc growth 3YN/A
ROICexc growth 5Y3.66%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
F-Score5
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 117.1% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.14% | ||
| Profit Quality | 117.55% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.29 |
F-Score5
WACC11.21%
ROIC/WACC0.79
Cap/Depr(3y)152.13%
Cap/Depr(5y)186.24%
Cap/Sales(3y)7.16%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-66.72%
EBIT growth 3YN/A
EBIT growth 5Y13.72%
EBIT Next Year-51.62%
EBIT Next 3Y-1.76%
EBIT Next 5YN/A
FCF growth 1Y-79.58%
FCF growth 3YN/A
FCF growth 5Y7.3%
OCF growth 1Y-66.1%
OCF growth 3Y118.27%
OCF growth 5Y8.74%
Arch Resources Inc / ARCH FAQ
What is the fundamental rating for ARCH stock?
ChartMill assigns a fundamental rating of 6 / 10 to ARCH.
What is the valuation status for ARCH stock?
ChartMill assigns a valuation rating of 7 / 10 to Arch Resources Inc (ARCH). This can be considered as Undervalued.
How profitable is Arch Resources Inc (ARCH) stock?
Arch Resources Inc (ARCH) has a profitability rating of 8 / 10.
What is the valuation of Arch Resources Inc based on its PE and PB ratios?
The Price/Earnings (PE) ratio for Arch Resources Inc (ARCH) is 13.13 and the Price/Book (PB) ratio is 1.69.
What is the earnings growth outlook for Arch Resources Inc?
The Earnings per Share (EPS) of Arch Resources Inc (ARCH) is expected to decline by -81.89% in the next year.